It is normal for the average house buyer to have a list of attributes he or she desires in a property, such as the location, price and square feet. But do you know that the type of land you live on is equally important? Here we are not distinguishing between leasehold of freehold land, but the concept of residential or commercial plots. Here is why:

Rates and charges

Ordinarily, properties on commercial land generate higher charges compared to those on residential land. Such charges include quit rent and assessment, water, electricity and sewerage charges. 

In short, you pay more for your bills if your property resides on a commercial lot. Hence it is important to know the type of land you are living on and if you are paying the commercial rate for your utilities. Let's get down to the basics:

Landed Properties

With landed properties, the nature of the land is obvious. Residential landed properties belong on residential land while retail lots on commercial land. But with high-rise projects, this becomes confusing. Let us begin with the easy ones:

High rise: Clear cut segregation

In this scenario, the residential and commercial component has been clearly segregated. Even though they are attached together, the residential component resides on residential land while commercial and retail components are on commercial land.

 High rise: mixed

But what happens when the residential component resides on top of the commercial or retail elements? The type of land is determined by the component that makes up the base of the property. It does not matter that the residential units far outweigh the retail units in quantity. As long as the retail or commercial units form the base on which the residential units reside on, the land is still considered a commercial lot.

So does that mean that you as a house owner will have to pay the commercial rate for charges? Not necessarily. A responsible developer would help to work with the utility providers to ensure that homebuyers are charged residential rates. Even if the developer has failed to do so, owners can still approach the utility providers themselves. So as long as they can prove that their units are for residential purposes, there is usually no problem. Before buying your house, do clarify with the developer if this matter has already been ironed out.